3) EZy Inc. preferred stock pays a $4 annual dividend. What is the value of the stock if your required rate of return is 10%?

4) Peterson Dune Company paid a $3 dividend per share last month. The cost of capital is 5 % and the company is expected to grow at 3% per year forever. How much should be the value of the stock? If the shares are selling for $55 in the market, is it over-valued or under-valued? Should you buy it?

5) Cleese Payment Company is expected to pay a $3 dividend per share at the end of this year. The companys beta is 1. Three months US Treasury bill yield is 2 %, and the return on the S&P 500 index is 10 %. It is expected to grow at 4% per year forever. How much should be the value of the shares?

1) What are the expected return and the standard deviation for Tiffin Co. stock? Tiffin Co. 2) Assume that you are holding the following portfolio: If the risk-free rate of return is 3% and the market risk premium is 5%, what is the required return on the portfolio